StatoilHydro Gets Go-Ahead to Use Scarabeo 5 for Alve Drilling Program

Petroleum Safety Authority Norway

StatoilHydro has received consent to use the semisub Scarabeo 5 for production drilling on Alve.

Alve is a small gas and condensate discovery in the Norwegian Sea, 16 kilometers southwest of the Norne field. Production from Alve is to be phased in to the Norne field, with planned start-up in early 2009.

The consent relates to drilling of a new 8 1/2" section and completion of production well 6507/3-L2 H, which is part of production license 159B. This is exploration well 6507/3-5 S, which was drilled by Ocean Vanguard in March 2008.

The plan is to start drilling and completion of the well in October 2008, as soon as the Scarabeo 5 has completed its five-year classification inspection in Olen. The estimated duration of the activity is 30 days.

The Scarabeo 5 is a semisubmersible drilling facility built in Italy at Fincantieri Shipyards Genova, commissioned in 1990. The semisub received an Acknowledgement of Compliance in May 2003 and is operated by Saipem from its operations office in Stjordal.